Tax Transition Analysis for Financial Advisors
Model how a prospect portfolio moves to a target allocation, with cost basis, capital gains impact, and a transition path that carries into the proposal and implementation.
Trusted by advisory firms across North America
Portfolio Transitions Are Hard to Model in a Spreadsheet
Moving a prospect from their current holdings to a target allocation means extracting cost basis, calculating gains, and modeling the transition path, all before the proposal goes out
Pulling lot-level cost basis from statements, matching purchase dates, and separating short-term from long-term gains takes time and precision that spreadsheets make harder than it should be.
Immediate transition, phased over two years, harvest losses first. Each path has different tax consequences. Modeling them side-by-side in a spreadsheet means rebuilding the analysis from scratch each time.
Clients with IRAs, trust accounts, and taxable brokerage accounts need coordinated transition plans. Optimizing which lots to move from which accounts means tracking cost basis across all of them at once.
How Tax Transition Analysis Works
Extract cost basis, model the transition path, include it in the proposal, and use the same plan to implement
Automated Cost Basis Extraction
Upload any brokerage statement. AI extracts cost basis, purchase dates, and lot-level detail automatically. No manual data entry. Complete analysis in minutes.
Model Around a Tax Budget
Set an annual capital gains budget and model transitions that stay within it. Compare immediate vs. phased strategies side-by-side. Federal and state taxes calculated automatically based on client brackets.
Include the Transition Plan in the Proposal
Add the transition path directly to the investment proposal: current vs. target allocation, capital gains impact, and the year-by-year roadmap. The prospect sees exactly how the portfolio gets from here to there.
Use the Same Plan to Implement
Once the client approves, the transition plan becomes the implementation guide. Track which positions to move, when to move them, and how the capital gains budget is tracking, without rebuilding the analysis.
Trusted by financial advisors
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Frequently asked questions
Common questions answered
How accurate are the capital gains tax calculations?
Tax transition analysis calculates federal and state capital gains taxes based on current IRS tax rates and the client's tax bracket. The cost basis analysis accounts for short-term vs. long-term capital gains, different cost basis methods (FIFO, LIFO, specific lot identification), and applicable state tax rates. Results are accurate for portfolio transition planning, though final tax decisions should be confirmed with a CPA.
How accurate is the cost basis extraction?
The AI extracts cost basis directly from uploaded brokerage statements, maintaining lot-level detail for accurate capital gains calculations. Works with 100+ statement formats.
Does it calculate state capital gains taxes in addition to federal?
Yes. Configure the client's state of residence and the system calculates both federal and state capital gains taxes. This matters most in high-tax states like California (13.3%), New York (10.9%), and New Jersey (10.75%) where state capital gains taxes significantly affect transition decisions.
How long does a tax transition analysis take?
Most complete analyses finish in under 10 minutes. Upload the brokerage statement, AI extracts holdings and cost basis automatically, input the target allocation, and the system generates multiple tax-efficient transition scenarios with capital gains tax calculations. Compare strategies, adjust assumptions, model tax-loss harvesting, and export client-ready reports, all in one session.
Does the tool model tax-loss harvesting to offset capital gains?
Yes. The tax transition analysis automatically identifies positions with unrealized losses that can be harvested to offset capital gains from other positions. Model different tax-loss harvesting strategies (immediate harvest, phased harvest over years, or targeted harvest) and see the net capital gains tax impact of the entire tax-efficient transition plan.
What if the client has multiple taxable accounts?
Tax transition analysis runs across multiple taxable accounts simultaneously. The system coordinates lot-level cost basis across all accounts and optimizes which positions to transition from which accounts to minimize overall capital gains tax impact. Works across 401(k) rollovers, brokerage accounts, and trust accounts.
Can the analysis be included in client proposals?
Yes. Tax transition analysis integrates directly into proposal generation. Include side-by-side scenario comparisons showing capital gains tax impact, year-by-year transition roadmaps, and cost basis summaries in branded proposals. Or share via secure link for clients to review online.
How does tax transition analysis connect to proposals and implementation?
The transition plan feeds directly into proposal generation: current vs. target allocation, capital gains impact, and the phased roadmap all appear in the proposal. Once the client approves, the same plan serves as the implementation guide so the transition executes exactly as presented.
See Tax Transition Analysis in Action
Book a demo to walk through cost basis extraction, transition modeling, proposal integration, and implementation tracking.